Aviva to sell Russian insurance unit

Aviva PLC, the British parent company of West Des Moines-based Aviva USA, has
agreed to sell its Russian unit as it continues to scale back globally, Bloomberg
reported.

Blagosostoyanie, a private Russian pension fund, agreed to pay 35
million euros ($46 million) in cash for Aviva Russia, the London-based insurer
said Wednesday. The sale gives Aviva a "modest premium" to book
value, according to the statement from the company.

Aviva's capital has been hurt
by the European debt crisis more than any other U.K. insurer because it gets 40
percent of its life insurance operating profit from the euro region and holds
more euro sovereign debt than competitors, according to data compiled by
Bloomberg. In December, Aviva announced the sale of Aviva USA to Athene Holding
Ltd. for $1.8 billion and its share of Spanish venture Aseval for 603 million
euros to Bankia SA.